Home FeatureEnergy Nigeria secures $1.5bn US-backed loan for solar projects

Nigeria secures $1.5bn US-backed loan for solar projects

by Goddie Ofose
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Nigeria has secured a $1.5 bn loan facility from the US-EXIM Bank to deliver solar power infrastructure in 10 different locations nationwide.

Chief Executive Officer, SUN Africa LLC, USA, Adam Cortese, disclosed this to State House correspondents after a meeting of a delegation of the company with the President, Major General Muhammadu Buhari  (retd.), at the Presidential Villa, Abuja on Thursday.

Cortese noted that the government-to-government loan facility would cover a concession period of 20 years.

He said, “This is government-to-government financing. It’s built upon the success that we’ve had in Angola recently, where we’ve delivered roughly $2.6bn of solar PV storage and transmission capacity.

“I think the important point to note here is yes, it’s a government-to-government loan, from the US-EXIM Bank to the government of Nigeria, but it’s being done at a concessional rate, over 20-year tenure, which is extremely attractive.

“What’s unique about this model is that NDPHC is going to own its own assets. So, it’s going to own its own generation base and our project will deliver a low-levelised cost of electricity, which will not only allow them to pay back the loan from EXIM Bank, but generate a profit on top of it.”

Receiving the delegation earlier, President Buhari declared that Nigeria’s drive to integrate solar power into the country’s energy supply would increase access to electricity in both underserved and unserved communities.

This was contained in a statement issued by the Special Adviser to the President

Media and Publicity, Femi Adesina, titled ‘Nigerians energy policy prioritises rapid integration of solar power, President Buhari says.’

Buhari said his regime had embarked on several reforms to revive the country’s energy sector and improve energy access nationwide.

He applauded the interest of SUN AFRICA to invest in Nigeria’s power sector, vowing that the Federal Government would remain committed to collaborating with the private sector to improve energy access, creating jobs and industrial development.

Enumerating some of the reforms embarked upon by this administration to address Nigeria’s energy needs, the President listed the recent signing of the Nigeria Climate Change Bill in November 2021, the implementation of the Power Sector Recovery Programme with the World Bank and the Nigeria Electrification Program aimed at enhancing energy access to remote communities.

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